Subaru delays decision on building U.S. plant
BY Wire Reports
Thursday, December 13, 2012
12/13/12 at 4:04 AM
Subaru has delayed a decision on expanding its U.S. manufacturing capacity as slumping demand in China and Europe give the company more room to ship vehicles to America.
The company will decide on the matter by March 30, instead of a previous plan to do so by Dec. 31, said Yasuyuki Yoshinaga, president of Toyko-based parent company Fuji Heavy Industries Ltd., in an interview Tuesday with Bloomberg News.
Subaru will probably choose an "incremental" expansion in U.S. manufacturing, rather than building a new factory, he said.
Subaru of Indiana Automotive Inc., which manufactures the Subaru Outback, Legacy and Tribeca line of vehicles in Lafayette, Ind., is the only Subaru assembly plant in the U.S. An associate company builds the Camry through a collaboration with Toyota Motor Corp.
Yoshinaga said Subaru is coping with sales declines in China and Europe by diverting shipments to the U.S. and Japan, where sales have been rising.
Fuji Heavy expects to sell 348,800 cars in the U.S., its largest market, during the current fiscal year.
Yasuyuki Yoshinaga: Subaru will likely make only an "incremental" expansion in U.S. manufacturing, the president of Fuji Heavy said.